# README
This repository contains code to replicate the results in Auclert, Bardóczy, Rognlie (2021):
"MPCs, MPEs and Multipliers: A Trilemma for New Keynesian Models".

The language of the repository is Python. 

Overview
---------
- Top-level notebooks.  
  - `calibration.ipynb`: Calibrates all models for all parameterizations and saves results. 
  - `figures_tables.ipynb`: Creates formatted figures and tables from pre-computed steady states.
- Top-level scripts.
  - `plots.py`: Flexible plotting functions.
  - `sticky_price.py`: Sequence-space representation of sticky-price model.
  - `sticky_wage.py`: Sequence-space representation of sticky-wage model.
  - `ghh_plus.py`: household block with GHH-plus preferences and endogenous labor supply.
  - `separable.py`: household block with separable preferences and exogenous labor income.
- **toolkit**: Folder contains a copy of the Sequence-Space Jacobian toolkit that we use to solve the models.
- **import_export**: Folder stores results: steady states, figures.
  - *calibration*: Folder contains calibrated steady states.
  - *figures*: Folder contains figures as pdfs.

Detailed Instructions
---------------------------
Running the code requires Python 3.8 or newer with standard packages listed in `requirements.txt`. 
1. Run `calibration.ipynb` to obtain steady states. This can take 1-2 hours on a laptop.
   - Results are saved as `.npy` files in `import_export/calibration`.
   - See `sticky_price.calibrate` and `sticky_wage.calibrate` functions for default parameters and full list of options.
2. Run `figures_tables.ipynb` to compute fiscal multipliers. This can take 7-15 minutes on a laptop.
   - Results are saved as `.pdf` files in `import_export/figures`.
   - See `plots.py` for default parameters and plotting options.
